Newspaper article THE JOURNAL RECORD

United Dental, President Settle Stock Dispute

Newspaper article THE JOURNAL RECORD

United Dental, President Settle Stock Dispute

Article excerpt

Oklahoma City-based United Dental Care Inc. and its president, Charles Montgomery, have settled a dispute with the Oklahoma Securities Department concerning unethical practices in the sale of the company's stock, the department announced Wednesday.

The company and its president agreed to hire counsel knowledgeable in Oklahoma securities laws before engaging in securities transactions in Oklahoma.

Reliance on the advice of counsel had been the sole defense used by United Dental and Montgomery against the department's allegations of misconduct in the United Dental stock offering.

United Dental agreed to pay the department $5,000 to defray the cost of prosecuting the adminstrative case, first filed in-house on Feb. 1.

Initially, the department sought to suspend the broker-dealer registration of Anderson, Bryant & Co., an Oklahoma City brokerage; revoke the principal license of the brokerage's president, Gary Bryant; bar Larry Phillips, a former Anderson, Bryant broker, from the securities industry; and stop other United Dental officials, namely its lawyer, John R. Thompson, and its accountant, Fred S. Horton, from selling United Dental stock.

The allegations focused on Anderson, Bryant's December 1985 private placement of 3 million shares of United Dental stock, with a portion of the proceeds earmarked to capitalize United Dental.

In mid-1986, United Dental merged with Mega-Plex Inc., a Utah shell company, to bring United Dental public, making its stock available for trading on the open market.

A Houston man, David M. Klausmeyer also was named by the department as a defendent because he and his company, Southwest Reification Inc. …

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